Evidence-led CGT valuation reports for Australian businesses.
Independent market valuation reports for capital gains tax events — sales, transfers, deemed disposals, related-party transactions and share buybacks. Prepared with ATO market valuation expectations in mind. From $1,495 + GST.
A CGT valuation report establishes the market value of a business or business interest at a specific date for capital gains tax purposes. Prismi prepares evidence-led CGT valuation reports for sales, transfers, deemed disposals, related-party transactions and share buybacks across Australia. Reports are independent, human-reviewed, prepared in accordance with International Valuation Standards and ATO market valuation guidance.
When a CGT valuation is required
A CGT market valuation is typically required when there is no arm's length transaction price, when related parties are involved, when the small business CGT concessions are claimed, or when the ATO requires a substantiated value for cost base, market value substitution or restructure rollover purposes. Common triggers include the sale of a private business, share transfers between family members or related entities, restructures under Subdivisions 122-A, 124-G and 328-G, share buybacks and capital reductions, estate and succession matters, and small business CGT concession claims.
The supportable valuation position
A business has a range of defensible values depending on methodology, evidence weighting and the commercial purpose of the engagement. Our work is to test multiple accepted methodologies, identify the supportable range, and conclude at the position the methodology and facts best defend. Where the evidence allows a more favourable supportable position, we identify it and document the reasoning. Where the evidence requires a more conservative position, we say so.
What the report includes
- ·Executive summary with concluded valuation position and supportable range
- ·Purpose, scope, valuation date and intended use
- ·Basis of value (Market Value per IVS 104) and reliance statement
- ·Business overview, ownership structure and financial summary
- ·Normalised earnings analysis with add-back schedule
- ·Methodologies considered with reasoning for selection and rejection
- ·Valuation range across tested methodologies with sensitivity analysis
- ·Valuation Position Analysis — why the conclusion is the most supportable
- ·Key assumptions, limitations and rationale
- ·Independence statement and senior reviewer sign-off
- ·Working file retained 10 years
Documents we need
- ·Last 3–5 years of financial statements
- ·Current year-to-date management accounts
- ·Asset register and depreciation schedule
- ·Shareholder or unit-holder register
- ·Related-party transactions schedule
- ·Customer concentration data
- ·Key contracts summary
- ·Add-back evidence where applicable
Turnaround
Essential CGT Valuations are delivered in 10–14 business days. Comprehensive reports take 15–25 business days. Defensible Valuation Files for higher-value or complex matters take 25–35 business days. Rush turnaround is available at +30% of the base fee, subject to capacity.
Common questions.
Is a CGT valuation report accepted by the ATO automatically?+
No valuation is "ATO-approved" — the ATO does not pre-approve valuations. Reports prepared by Prismi are independent, supportable and prepared with ATO market valuation expectations in mind. Methodology, evidence and reasoning are documented so the position is defensible if reviewed.
Can the valuation outcome be influenced by the client?+
No. Our fees are fixed at engagement. Methodology and conclusions are independent. We will not adjust a conclusion to reach a target value. Where a client requests an outcome the evidence does not support, we will say so and decline the engagement on those terms.
What if a higher valuation would be more commercially favourable?+
Where the evidence supports a more favourable position within the supportable range, we identify it and explain the methodology that supports it. We do not adopt positions the evidence does not support — the favourable position must be defensible.
Ready to discuss your engagement?
Fifteen-minute discovery call. We confirm the tier, fee and timing before you commit.
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